Santorsola Relax Hotel

Two reservations - paied in full 2 weeks in advance. 18-23 august and 24-28 august. The 16th of August I'm forced to call and try to cancel, since our kids were not well and me and my wife had to change plans. The management told me they would have came back to me but nobody called me, until the 18th - starting date of the first reservation - I'm calling them. They told me I had to lose all the money. And I accepted because it was not their fault. I inform them that I would have spent 1 night at the hotel (the 20th night) and I hang up. After few hours I notice that I could have recovered the second reservation in full (more than 7 days before the arrival). I called them to ask why they didn't tell me that and nobody told me anything but to send an email. I sent an email and they accepted to refund me for the second reservation. I asked them, since I paied almost 500 euros for the first reservation, to give me - for the night of the 20th of august - some kind of higher treatment...we arrived at 20th night and we've been assigned to a very poor room, with a cabinet without key to be opened, with a bank bed beside the queen bed and tens of chairs stocked in the corridor. I asked the manager why they decided to let us have this experience - she told me that we make them lose other reservations with our cancellation. A bit confused I decided not to continue. They have 500 euros in hand, we used 1 night a very poor room and they can sell our room to other people. I don't see the issue. For sure, I'm never gonna be back in this hotel. PS: I haven't received any refund so far...